Afcom Holdings Ltd's Initial Public Offering (IPO) made a strong debut on the BSE SME platform on August 9. The company’s shares were listed at a premium of 90 percent, opening at Rs 205.20 compared to the issue price of Rs 108. The IPO was open for bidding from August 2 to August 6.
The Afcom Holdings IPO, a book-built issue worth Rs 73.83 crores, involved a fresh issue of 68.36 lakh shares. The price band for the shares was set between Rs 102 and Rs 108 per share. Investors were required to bid for a minimum of 1,200 shares, translating to a minimum investment of Rs 1.3 lakh for retail investors. High-net-worth individuals (HNIs) were required to invest a minimum of Rs 2.6 lakh for 2,400 shares.
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GYR Capital Advisors Pvt Ltd acted as the book-running lead manager for the IPO, while Link Intime India Pvt Ltd served as the registrar. The IPO successfully raised Rs 20.48 crore from anchor investors prior to the public bidding.
The IPO's subscription figures were impressive, with the issue being oversubscribed 303 times by the close of bidding. The retail category saw a subscription rate of 203 times, the Qualified Institutional Buyers (QIB) category was subscribed 186 times, and the Non-Institutional Investors (NII) category attracted a staggering 698 times subscription.
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The funds raised through the IPO are earmarked for various purposes. These include acquiring two new aircraft on a lease basis, repaying or prepaying existing borrowings, meeting working capital requirements, and covering general corporate expenses.
The company, established in February 2013, specialises in airport-to-airport cargo transportation and operates with General Sales and Service Agents (GSSAs) across several key international markets, including India, Hong Kong, Singapore, and Japan. Afcom Holdings focuses on cargo flights to ASEAN countries, with a particular emphasis on Singapore.
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